RETAIL OPPORTUNITY INVESTMEN (ROIC) Stock Fundamental Analysis
USA - NASDAQ:ROIC - US76131N1019 - REIT
17.49 USD
0 (0%)
17.49 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ROIC. ROIC was compared to 130 industry peers in the Diversified REITs industry. ROIC scores excellent on profitability, but there are concerns on its financial health. ROIC is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ROIC had positive earnings in the past year.
In the past year ROIC had a positive cash flow from operations.
Each year in the past 5 years ROIC has been profitable.
ROIC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ROIC (1.92%) is better than 69.84% of its industry peers.
The Return On Equity of ROIC (4.47%) is better than 68.25% of its industry peers.
ROIC has a Return On Invested Capital (3.10%) which is comparable to the rest of the industry.
ROIC had an Average Return On Invested Capital over the past 3 years of 2.80%. This is in line with the industry average of 3.05%.
The last Return On Invested Capital (3.10%) for ROIC is above the 3 year average (2.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 4.47% | ||
| ROIC | 3.1% |
ROA(3y)1.56%
ROA(5y)1.49%
ROE(3y)3.6%
ROE(5y)3.51%
ROIC(3y)2.8%
ROIC(5y)2.77%
1.3 Margins
With a decent Profit Margin value of 17.24%, ROIC is doing good in the industry, outperforming 72.22% of the companies in the same industry.
In the last couple of years the Profit Margin of ROIC has declined.
ROIC has a Operating Margin of 34.07%. This is in the better half of the industry: ROIC outperforms 71.43% of its industry peers.
ROIC's Operating Margin has been stable in the last couple of years.
ROIC has a better Gross Margin (82.88%) than 83.33% of its industry peers.
In the last couple of years the Gross Margin of ROIC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.07% | ||
| PM (TTM) | 17.24% | ||
| GM | 82.88% |
OM growth 3Y0.29%
OM growth 5Y-0.84%
PM growth 3Y-2.53%
PM growth 5Y-6.17%
GM growth 3Y-0.94%
GM growth 5Y-0.47%
2. Health
2.1 Basic Checks
ROIC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ROIC has more shares outstanding
The number of shares outstanding for ROIC has been increased compared to 5 years ago.
ROIC has a better debt/assets ratio than last year.
2.2 Solvency
ROIC has an Altman-Z score of 0.86. This is a bad value and indicates that ROIC is not financially healthy and even has some risk of bankruptcy.
ROIC has a Altman-Z score of 0.86. This is in the better half of the industry: ROIC outperforms 65.87% of its industry peers.
ROIC has a debt to FCF ratio of 565.81. This is a negative value and a sign of low solvency as ROIC would need 565.81 years to pay back of all of its debts.
With a Debt to FCF ratio value of 565.81, ROIC perfoms like the industry average, outperforming 46.03% of the companies in the same industry.
ROIC has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
ROIC has a Debt to Equity ratio (1.09) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 565.81 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.44
WACC7.02%
2.3 Liquidity
A Current Ratio of 1.41 indicates that ROIC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.41, ROIC is in line with its industry, outperforming 59.52% of the companies in the same industry.
ROIC has a Quick Ratio of 1.41. This is a normal value and indicates that ROIC is financially healthy and should not expect problems in meeting its short term obligations.
ROIC has a better Quick ratio (1.41) than 62.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The earnings per share for ROIC have decreased strongly by -13.79% in the last year.
Measured over the past years, ROIC shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.73% on average per year.
ROIC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.18%.
ROIC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.07% yearly.
EPS 1Y (TTM)-13.79%
EPS 3Y-1.2%
EPS 5Y-2.73%
EPS Q2Q%-42.86%
Revenue 1Y (TTM)4.18%
Revenue growth 3Y4.88%
Revenue growth 5Y2.07%
Sales Q2Q%2.13%
3.2 Future
Based on estimates for the next years, ROIC will show a small growth in Earnings Per Share. The EPS will grow by 7.99% on average per year.
Based on estimates for the next years, ROIC will show a small growth in Revenue. The Revenue will grow by 1.84% on average per year.
EPS Next Y73.78%
EPS Next 2Y3.76%
EPS Next 3Y6.53%
EPS Next 5Y7.99%
Revenue Next Year4.36%
Revenue Next 2Y2.65%
Revenue Next 3Y2.38%
Revenue Next 5Y1.84%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 69.96, ROIC can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of ROIC is on the same level as its industry peers.
ROIC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.32.
ROIC is valuated quite expensively with a Price/Forward Earnings ratio of 60.17.
ROIC's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of ROIC to the average of the S&P500 Index (22.89), we can say ROIC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.96 | ||
| Fwd PE | 60.17 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ROIC indicates a slightly more expensive valuation: ROIC is more expensive than 66.67% of the companies listed in the same industry.
ROIC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 894.73 | ||
| EV/EBITDA | 16.29 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of ROIC may justify a higher PE ratio.
PEG (NY)0.95
PEG (5Y)N/A
EPS Next 2Y3.76%
EPS Next 3Y6.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.43%, ROIC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.38, ROIC is paying slightly less dividend.
ROIC's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
5.2 History
The dividend of ROIC decreases each year by -10.38%.
ROIC has been paying a dividend for at least 10 years, so it has a reliable track record.
ROIC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-10.38%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
ROIC pays out 131.94% of its income as dividend. This is not a sustainable payout ratio.
DP131.94%
EPS Next 2Y3.76%
EPS Next 3Y6.53%
17.49
0 (0%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.95%
Inst Owner Change-27.68%
Ins OwnersN/A
Ins Owner Change0%
Market Cap2.24B
Analysts50.91
Price Target16.7 (-4.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
Yearly Dividend0.45
Dividend Growth(5Y)-10.38%
DP131.94%
Div Incr Years3
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.39%
Min EPS beat(2)-39.67%
Max EPS beat(2)-7.12%
EPS beat(4)1
Avg EPS beat(4)-5.39%
Min EPS beat(4)-39.67%
Max EPS beat(4)32.35%
EPS beat(8)2
Avg EPS beat(8)-6.5%
EPS beat(12)5
Avg EPS beat(12)4.15%
EPS beat(16)9
Avg EPS beat(16)31.8%
Revenue beat(2)1
Avg Revenue beat(2)0.08%
Min Revenue beat(2)-0.61%
Max Revenue beat(2)0.76%
Revenue beat(4)2
Avg Revenue beat(4)1.72%
Min Revenue beat(4)-0.61%
Max Revenue beat(4)6.93%
Revenue beat(8)4
Avg Revenue beat(8)0.53%
Revenue beat(12)6
Avg Revenue beat(12)0.65%
Revenue beat(16)8
Avg Revenue beat(16)0.7%
PT rev (1m)0%
PT rev (3m)-1.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)31.43%
EPS NY rev (3m)21.05%
Revenue NQ rev (1m)-1%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.96 | ||
| Fwd PE | 60.17 | ||
| P/S | 6.64 | ||
| P/FCF | 894.73 | ||
| P/OCF | 15.43 | ||
| P/B | 1.72 | ||
| P/tB | 1.78 | ||
| EV/EBITDA | 16.29 |
EPS(TTM)0.25
EY1.43%
EPS(NY)0.29
Fwd EY1.66%
FCF(TTM)0.02
FCFY0.11%
OCF(TTM)1.13
OCFY6.48%
SpS2.64
BVpS10.15
TBVpS9.82
PEG (NY)0.95
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 4.47% | ||
| ROCE | 3.92% | ||
| ROIC | 3.1% | ||
| ROICexc | 3.16% | ||
| ROICexgc | 3.21% | ||
| OM | 34.07% | ||
| PM (TTM) | 17.24% | ||
| GM | 82.88% | ||
| FCFM | 0.74% |
ROA(3y)1.56%
ROA(5y)1.49%
ROE(3y)3.6%
ROE(5y)3.51%
ROIC(3y)2.8%
ROIC(5y)2.77%
ROICexc(3y)2.81%
ROICexc(5y)2.78%
ROICexgc(3y)2.86%
ROICexgc(5y)2.83%
ROCE(3y)3.55%
ROCE(5y)3.51%
ROICexcg growth 3Y4.14%
ROICexcg growth 5Y1.52%
ROICexc growth 3Y4.44%
ROICexc growth 5Y1.76%
OM growth 3Y0.29%
OM growth 5Y-0.84%
PM growth 3Y-2.53%
PM growth 5Y-6.17%
GM growth 3Y-0.94%
GM growth 5Y-0.47%
F-Score6
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 565.81 | ||
| Debt/EBITDA | 6.42 | ||
| Cap/Depr | 135% | ||
| Cap/Sales | 42.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.79% | ||
| Profit Quality | 4.3% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 0.86 |
F-Score6
WACC7.02%
ROIC/WACC0.44
Cap/Depr(3y)145.7%
Cap/Depr(5y)104.48%
Cap/Sales(3y)46.5%
Cap/Sales(5y)33.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.79%
EPS 3Y-1.2%
EPS 5Y-2.73%
EPS Q2Q%-42.86%
EPS Next Y73.78%
EPS Next 2Y3.76%
EPS Next 3Y6.53%
EPS Next 5Y7.99%
Revenue 1Y (TTM)4.18%
Revenue growth 3Y4.88%
Revenue growth 5Y2.07%
Sales Q2Q%2.13%
Revenue Next Year4.36%
Revenue Next 2Y2.65%
Revenue Next 3Y2.38%
Revenue Next 5Y1.84%
EBIT growth 1Y6.57%
EBIT growth 3Y5.18%
EBIT growth 5Y1.22%
EBIT Next Year98.32%
EBIT Next 3Y27.23%
EBIT Next 5Y20.38%
FCF growth 1Y102.09%
FCF growth 3Y2.72%
FCF growth 5Y9.65%
OCF growth 1Y-6%
OCF growth 3Y11.39%
OCF growth 5Y2.41%